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| The only true way to tell if farming is making you money is to value everything at a certain point in time during the year.
Whether one adds in the land appreciation with the farming could be debated. I look at it as an investment, so land value does not matter in the farming operation.
It does matter in my total net worth, just the same as if my stocks went up or down.
I can show a profit on my tax return with the same machinery and inventory as last year, but may actually have a loss as my combine is worth $50,000 instead of the $100,000 last year.
ONe truly never knows if he makes money until he sells out. The government can come in and make wetlands determination or say one sodbuster and years of payments, plus penalty and interest are due, even after the sale. | |
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My accountant claims…
